Purpose of the Course

Get familiar with the research tools in economics such

to able to produce Report , Scientific Article, Term
Paper, Review……. and a Thesis (Final Research
Paper)
Unit 1

The Concept of Research

Debre Markos university

Department of economics
By Anduamlak A.
 Unit Objectives

 Identify the two sources of knowledge

 Define the concept of research
 Characteristics of scientific research
 Explain the purpose of research
 Types of research
 Motive of doing research
 Research Method and methodology
 Research Process
 Criteria of a Good Research
 Sources of Knowledge
 Research in common parlance refers to a search of
knowledge.
 Thus, for a clear perception of the term research,
one should know the source of knowledge and
meaning of scientific method.
• Because, The two terms, Research and Scientific
Method, are closely related.

Two major approaches to acquire knowledge:

I. Unscientific Knowledge
II.Scientific Knowledge
 A. Types of unscientific Sources of knowledge

1. The Method of Tenacity

• Automatic acceptance of beliefs without exploring them.

Example
 Black injera has high iron content.
 The sun rises in the east.
 Ethiopians have burned faces.

Problems:
- Knowledge by familiarity alone – no proof of its truth
- No means for correcting ideas which are proved to be not
true.
 Cont’d

2. The method of Authority

• Accepting information we have been told by
authority figure.

Example
• Smoking affects our health

Problem:
- It is only useful and beneficial if the authority figure
is knowledgeable in the area.
 Cont’d

3. The a prior method/deductive reasoning

• Reason and logic are the basic tools for a priori method.

Example 1. Ayele’s family are tall.

Alemitu is in Ayele’s family
Therefore, Alemitu is tall. _FALSE

conclusion from false premises.

Example 1. Human being is mortal

Alemu is a human being.
Therefore, Alemu is mortal.
Conclusion might be wrong
 Cont’d …

4. Commonsense
• Knowledge acquired from past experience or from our
perceptions of the world.

It is good for routines aspects of daily life but hinders to

widen our knowledge.

Example
The price of teff increases if the rainy season fails.
 II. Scientific method as a Source of knowledge
• Knowledge acquired systematically. i.e. evaluate observation
by our bodily senses or measuring devices.

• It is sometimes seen as a controlled Extension of unscientific

knowledge.

• Science relies on information that is Verifiable.

Science Differs from Unscientific

 uses conceptual schemes and theoretical structures.
 gives explanations or reasoning for different observed
phenomena.
 Cont’d
Science:
• Systematically build theoretical structure
• Test them for internal consistency
• test empirically subject aspects of the phenomenon.
Thus, Scientific Method implies an Objective, Logical and
Systematic Method
 A method free from personal bias or prejudice
 A method to ascertain demonstrable qualities of a phenomenon
capable of being verified,
 A method wherein the researcher is guided by the rules of
logical reasoning
 A method wherein the investigation proceeds in an orderly
manner
 A method that implies internal consistency.
 Scientific Research – Definition
How is it different from non-scientific research?

Focuses on solving problems and pursues a step-by-step

logical, organized, and rigorous method.

That is
 Identify The Problems
 Collect Data
 Analyze and
 Draw Valid Conclusions

Non-scientific Research - based on Experience and

Intuition
 Scientific Research -Defined
What Research is?
There is no single definition of research and many scholars define
research with respect to their views of different perspectives

Research = Re + Search
☞ Re => a new, over again
☞ Search => to test and to probe

Together, Research is a Carefully, Systematic, Patient

study and Investigation in some flied of knowledge.
 Scientific Research -Defined

It is an investigation of finding solutions to scientific and

social problems through objective and systematic analysis.

Research is an organized and systematic way of finding

answers to questions.
 a search for knowledge in a scientific manner.
 a systematized effort to gain new knowledge.
 a movement from the known to the unknown.

• Research must be systematic and follow a series of

steps and a rigid standard protocol.
 Scientific Research -Defined

Research is:
 Chambers 20th Century Dictionary: “systematic
investigation towards increasing the sum of knowledge”

 Advanced Learner’s Dictionary of Current English: “a

careful investigation or inquiry specially through search
for new facts in any branch of knowledge”

 The Concise Oxford Dictionary “an endeavour to discover

new or collate old facts etc. by the scientific study of a subject
or by a course of critical investigation.”
 Scientific Research -Defined
• An activity that contributes to the understanding of a
Phenomenon [Kuhn, 1962; Lakatos, 1978]
• Phenomenon: a set of behaviors of some entity(ies)
that is found interesting by a research community

• Understanding: knowledge that allows prediction

of the behavior of some aspect of the phenomenon
• Activities: considered appropriate to the production
of understanding (knowledge) are the research
methods and techniques of a research community
 Scientific Research - Defined
 Thus, from these definitions it is clear that research is a
process of
Enumerating the problem
 Formulating a hypothesis
Collecting the facts or data
Analyzing the facts and
Reaching certain conclusions
 either in the form of Solutions toward the concerned
problem or in certain Generalizations for some theoretical
formulation
 Characteristics of scientific research
• In general we learn from these definitions any scientific
research has the following characteristics :
 Any scientific research is Systematic -follows a clear
procedure so that the experiment can be replicated and the
results verified.

 All scientific research has a goal, repeated and Refined

experimentation gradually reaching an answer.

 Scientific research is Impartial, Objective, Empirical

and Logical

 Scientific research leads to the development of

generalizations, principles or theories, resulting in to some
extent in prediction and control of events.
 Characteristics of scientific research
Typical features of scientific research:
 Systematic – ordered, planned and disciplined

 Controlled – confidence in research outcomes

 Empirical – putting beliefs, ideas, or assumptions to a test ;

and
 Critical – many truths are tentative and are subject to change
as a result of subsequent research.
 But to Qualify as Scientific Research, the process must have
Certain Characteristics:
 it must, as far as possible, be Purposive, Controlled, Rigorous,
Systematic, Valid /Verifiable/, Empirical and Critical.
 Characteristics of scientific research
Let us briefly examine these characteristics to understand what they
mean
Purposive /Aim
The purpose of scientific research is clear – problem
solving.
E.g. - leastbegins
Research cost design
with aofproblem.
hydraulic structure
- –optimum allocation
This problem needof not
irrigation water to beneficial
be Earth-shaking.
– Address only an important question.
– Remember that the Aim is to advance knowledge.

• Sources of problems: Observation, literature reviews,

professional conferences, etc.
 Characteristics of scientific research
Controlled: in exploring causality in relation to two variables,
you set up your study in a way that minimizes the effects of
other factors affecting the relationship.

Rigorous: You must be careful in ensuring that the procedures

followed to find answers to questions are relevant,
appropriate and justified.
 Based on good theoretical base and sound methodology
E.g. all parameters which affect the design of the structure must
be considered

Systematic: This implies that the procedures adopted to

undertake an investigation follow a certain logical sequence
 Characteristics of scientific research

Testability
 Test theoretical model by simulation or experiment
 Analysis of performance parameter against design
parameter

Empirical : any conclusions drawn are based upon hard

evidence gathered from information collected from real-life
experiences or observations.

Valid and verifiable: This concept implies that whatever

you conclude on the basis of your findings is correct and
can be verified by you and others.

Generalizability:- Research emphasizes on the development

of generalizations based on findings (obtained usually using
 Characteristics of scientific research

Logical: -Research is based on valid procedures and principles.

Cyclical:- Research is a cyclical process because it starts with a

problem and ends with a problem.

Analytical:-Research utilizes proven analytical procedures in

gathering the data, whether historical, descriptive, and
experimental and case study.

Methodical:- Research is conducted in a methodical manner

without bias using systematic method and procedures.
 What Research Is Not
• Research isn’t information gathering:
– Gathering information from resources such as books or
magazines isn’t research.
– No contribution to new knowledge.

• Research isn’t the transportation of facts:

– Merely transporting facts from one resource to another
doesn’t constitute research.
– No contribution to new knowledge although this might
make existing knowledge more accessible.
 Scientific Research -Purpose
• The purpose of research is problem solving and acquiring
new knowledge.
• It also reduces the complexity of problems.
• Though each research study has its own specific purpose
• In short, research is used for the purposes of:
 Describing Phenomena
 Explaining Phenomena
 Predicting Phenomena
 Controlling Phenomena
 Comparing Phenomena
 Scientific Research -Purpose
Description
 To describe accurately the characteristics of a particular
individual, situation or a group
• It is the first step to do in scientific research.
• It find answers to the questions “what, who and where”.

Example 1
• Study on properties of water in solid and liquid state
• What is the behavior of water in the solid and liquid state?
 has to be described first before testing why it is so.
Example 2
o Study on a biography of Tedy afro.
o Who is Tedy after all?
 it has to be described first.
 Scientific Research -Purpose

Explanation
 exploring the causes of the occurrence of certain event.
 It find answers to the questions “why”.

E.g. 1
- Why does ice have lower density than water?

E.g. 2
- Why Tedy is more popular singer than others at present ?
 Scientific Research -Purpose

Prediction
• generalizing about what will happen in the future.

E.g.
The different qualities of Tedy as mentioned …. makes him popular
– generalization based on collected data/observation.

Form the analysis of observed data, Tedy looks remain popular

– prediction from his past works
 Scientific Research -Purpose

Control
• intervene and subsequently observe an expected result.

E.g.
• Tedy will remain popular if …..
•intervention of the researcher. Showing that the research
was not done without aim.
 Scientific Research -Purpose

Comparison
• Explore whether two or more groups are similar or different on a
certain behavior or vice versa.

Examples;
 Is there gender difference in terms of level of participation
in politics
 Are Tedy’s songs are different in their substance from
others.

 Is there relationship between gender and academic

performance ?
 Motivations in Doing Research
What makes people to undertake research?
• The possible motives for doing research may be either one or more
of the following among others:
• Desire to get A Research Degree along with its consequential
benefits
• like better Employment, Promotion, Increment in Salary,
etc.
• Desire to face the challenges in solving the unresolved
problems, i.e., concern over practical problems;
• Desire to get Intellectual Joy of doing some creative work;
• Desire to be of Service to Society; and
• Desire to get Respectability
 Type /Classification of Research
• Research comes in many shapes and sizes.
• Before a researcher begins to conduct a study, he or she
must decide on a specific type of research.  

• Good researchers understand the advantages &
disadvantages of each type,  although most end
up specializing in one.
For classification of research we shall look from four dimensions
1. The purpose of doing research; Goal
2.  The intended uses of research; specific objectives
3.  How it treats time i.e. the Time Dimension in research; and
4. The research (data collection) techniques used in it.
 How to done?
Descriptive Vs. Analytical

Purpose Goal
approach
Basic vs. applied
Quantitative
vs. qualitative

Time dimension Source of data

One-time research Primary vs.

Vs. Longitudinal Secondary
 Types of research based on purpose

Basic vs. Applied

•Research could be undertaken to solve:

 Theoretical problems
=> Basic / Fundumental/ Research

 Practical or immediate problems

=>Applied /Action/Research
 Basic Research
Also known as pure or fundamental research
•It mainly concerned with generalizations and formulation of
theory.
•It is done for intellectual pleasure on learning and it has no
commercial value attached to the discoveries that result from basic
research
•This types of research has limited direct applications but in which
researcher has careful control over the research setting
Objective
 Advancement of knowledge(formulating or expanding theory)
 Understanding of theoretical relationship between variables
 Exploratory in nature (discovery of knowledge)
 Without any practical end in mind
Examples - How to increase the effectiveness of small businesses
- How to increase the productivity of the employees
These findings later become useful for application in business
 Applied Research
• Its Used to Solve specific, practical questions /problems
• Can be exploratory, but descriptive
• Involves precise measurement of the characteristics and describes
relationships between variables of a studied phenomenon
 Applied research employs methodology that is not as rigorous
as that of basic research.
 It yields findings that can be evaluated in terms of local
applicability and not in terms of universal validity.
• Investigation directed “to discovering new scientific knowledge
that has specific commercial objectives with respect to products,
processes or services.
Examples
How can communication among workers in large companies be improved?
Package sales increased by 100% from 2006 to 2012 but, sales decreased by
6% in 2013.
 what is the reason for this decrease?
 This question is : what will packages do about this problem?
 Descriptive vs. Analytical: based on specific objective

Descriptive Research
It includes surveys and fact-finding enquiries of
different kinds.
 The major purpose of descriptive research is
description of the state of affairs as it exists at present.
 In social science & business research we quite often use
the term Ex post facto research for descriptive
research.

 The main characteristic of this method is that the

researcher has no control over the variables; he can only
report what has happened or what is happening.
 Descriptive vs. Analytical: based on specific objective
 Themethods of research utilized in descriptive research are
survey methods of all kinds, including
 comparative and correlational methods
Example
◦ Frequency of shopping,
◦ Preferences of people,
◦ A survey of socio-economic condition of urban
Example
Ranking the key factors new collage graguates are seeking
in the first career
 Descriptive becuase, this study identifies and
priortizes these key factors
 Descriptive vs. Analytical: based on specific objective

Analytical / Explanatory research

Here, the researcher already has the description of an issue and uses
these facts or information to analyzes the “why” aspect and make a
critical evaluation of the material.

Example
Discovering the way that people who live in apartments actually
use vacuum cleaners and identifying cleaning tasks for which they
do not use a vacuum

Explanatory Research because, this research attempts to learn

more about how consumers use these products and perform cleaning
tasks
 Quantitative vs. Qualitative: based on approach

Quantitative research
•It is based on the measurement of quantity or amount.
•It is applicable to phenomena that can be expressed in terms of
Quantity.
The objective is to develop mathematical models, theories and
hypothesis pertaining to the natural phenomenon.
Most economic researches are done using this method. Example,
• Determinants of consumption
• Impact of devaluation of Birr on the BOP of Ethiopia
• Determinant of private investment in Ethiopia

• It can be further sub-classified into inferential, experimental

and simulation approaches
 Quantitative Approach
1. Inferential approach:
• Its aim is to form a data base from which to infer characteristics
or relationships of population.
• This usually means survey research where a sample of population
is studied to determine its characteristics, and it is then inferred
that the population has the same characteristics.

2. Simulation approach:
• involves the construction of an artificial environment within
which relevant information and data can be generated.
• This permits an observation of the dynamic behaviour of a
system (or its sub-system) under controlled conditions.
 Quantitative approach

3. Experimental approach
• Explores cause and effect relationships.
E.g. Eating too many bananas causes constipation.

E.g. establishing the functional relationship between

advertising and sales
Cusual research becuase, it attempts to predict what
happen to sales if a change in addvertizing occured
 Quantitative vs. Qualitative: based on approach

Qualitative research

• it is concerned with qualitative phenomenon whose aim

is to discover the underlying motives of human behavior
•It Concerned with subjective assessment of Attitudes,
Opinions and Behavior

Methods used in qualitative research

• Field Research, Case Study and
 Conceptual vs. Empirical: based on how to done
Conceptual research
It is that related to some abstract idea(s) or theory.
It is used to develop new concepts or to reinterpret existing ones.
Empirical research
It is based on observation and experience more than upon theory
It is data-based research.
It comes up with conclusions which are capable of being verified
by observation or experiment.
It can be qualitative & quantitative
Empirical research – research that bases its findings on direct or
indirect
observation as its test of reality.
Statistical formulas are fundamental to forming logical, valid conclusions.
Empirical & conceptual research complements each other in
developing an understanding of the phenomena, in predicting future
 Cont’d
Exploratory research is most commonly unstructured,
“informal” research that is undertaken to gain background
information about the general nature of the research problem.

Exploratory research is usually conducted when the

researcher does not know much about the problem and needs
additional information or desires new or more recent
information.

Exploratory research is used in a number of situations:

 To gain background information
 To define terms
 To clarify problems and hypotheses
 To establish research priorities
 Cont’d …
Therefore, exploratory research:
• provides significant insight into a given situation but
not usually useful for decision making by itself.

• Often relies on secondary research such as

reviewing available literature.

• helps to determine the best research design, data

collection method and selection of subjects.

E.g. Why our sales are declining?

 Cont’d …

A variety of methods are available to conduct

exploratory research:
 Secondary Data Analysis
 Experience Surveys
 Case Analysis
 Focus Groups
 Cont’d …

Primary and secondary research

Primary/field research – the collection of data that does not
already exist.

Primary Data: data collected from participants through

methods such as telephone, mail, online, and face-to-face
(quantitative), and observation studies and focus groups
(qualitative)

 Secondary/desk research – the summary, collection and/or

synthesis of existing research

Secondary Data: accessing data through sources such as the

internet and library
 Types of research based on how it is done

• Exploratory research – identifies new problems.

• Constructive research – develops solutions to a problem

• Empirical research – test a solution by empirical evidence

• Primary and secondary research – problem analysis using

either primary or secondary sources
 One-time research Vs. Longitudinal research
Based on Time Dimension

One-time research:
 the research is confined to a single time-period.

Longitudinal research:
 the research is carried on over several time-periods.
 Research method and methodology

Research Methods are the techniques/ procedures used to

collect and analyse data.

E.g. surveys, interviews, observations, etc.

Research Methodology
• A theory and analysis of how research does or should
proceed, or
• Discussions of how research is done, or should be done,
and the critical analysis of methods of research
 It involves the researchers assumptions

Assumptions are those things that the researcher is taking for

granted.
 The Research Process
• Research process consists of series of actions or steps
necessary to effectively carry out research
☞ but such steps overlap continuously rather than following a
strictly prescribed sequence
• At times, the first step determines the nature of the last
step to be undertaken.
– If subsequent procedures have not been taken into account in
the early stages, serious difficulties may arise which may even
prevent the completion of the study
• That is , The steps involved in research process are not
mutually exclusive; not they are separate and distinct
– They hardly necessarily follow each other in any specific
order.
 The Research Process
The general research process involves:
 Initial Phase: includes Identifying research topic,
Define research problem, Specify research questions.

 Planning Phase: - Designing the research (proposal

development)
– Working title, Review of literature (theoretical and/or
empirical), Formulating hypothesis, if any

 Implementation Phase:- Data collection, Data analysis,

Report writing.
 Research process

Design the
Define the Review the Formulate Research
research problem Literature Hypotheses (including
Review concepts
and theories Sampling)
Review previous
research finding

Analyze Data Collect Data

Interpret and (Execution)
(Test hypotheses
Report
if any)

• A brief description of these activities is as follows:

1. Formulating the Research Problem
• Formulating a research problem is the first and most
important step in the research process.
• Formulation of the problem means defining the
problem precisely.
• Formulation of problem is essential because when the
problem is formulated, an appropriate technique
can easily be applied to generate alternative
solutions.
• In other words, a problem clearly defined is half
solved.
 2. Extensive Literature Review
• Once the problem is formulated, a brief
summery of it should be written down.
• Literature review has three functions:
• Bringing clarity and focus to the
research problem
• Improving the methodology
• Broadening the researcher knowledge in
the research area.
 3. Development of Working Hypothesis

• After extensive literature survey, researcher

should state in clear terms the working
hypothesis.
• Working hypotheses is tentative solutions or
assumption made in order to draw out and
test its logical or empirical consequences.
• Hypotheses should be very specific and limited to
the piece of research in hand because it has to be
tested.
 4. Preparing the Research Design

• Research design is defined as a blueprint or

detailed plan
• for how a research study is to be completed,
• Operationalizing Variables so they can be measured,
• Selecting A Sample of interest to study,
• Collecting Data to be used as a basis for testing hypothesis
and analyzing the results.
• It is the complete scheme or programme of
the research.
 5. Determining Sampling Design
• All the items under consideration in any field of
inquiry constitute a universe or population.
• A complete enumeration of all the items in the
population is known as a census inquiry.
• Because of the difficulty, relative inaccuracy and
biasness related to census study determining
sample,
sample few elements from the population, becomes
mandatory.
• In such cases, the researcher must decide the way of
selecting a sample or what is popularly known
as the sample design.
 6. Collecting the Data

• There are several ways of collecting the

appropriate data which differ considerably in
context of money (costs), time and other
resources at the disposal of the researcher.
 7. Analysis of Data
• The analysis of data requires a number of
closely related operations such as:
a) Establishment of categories,
b) Coding,
c) Tabulation ,and
d) Drawing statistical values
 8. Hypothesis Testing

• After analyzing the data, the researcher is in

a position to test the hypothesis, if any, he/she
had formulated earlier.
• Do the facts support the hypotheses or they
happen to be contrary?
• Various tests, such as
• Chi square test,
• t-test,
• F-test may be applied.
 9. Preparation of the Research Report

• Finally, the researcher has to prepare the

report of what has been done by him following
the appropriate formats and appropriate
language.
 Criteria Of A Good Research
Systematic: It means that research is structured with specified
steps to be taken in a specified sequence in accordance with the
well-defined set of rules.
Logical: research is guided by the rules of logical reasoning and
the logical process of induction and deduction are of great value in
carrying out research.
Empirical: It implies that research is related basically to one or
more aspects of a real situation and deals with concrete data that
provides a basis for external validity to research results.
Replicable: This characteristic allows research results to be
verified by replicating the study and thereby building a sound basis
for decisions.
End of Unit 1